If Net Exports Are Negative, Then

Multiple Choice

If net exports are negative, then

A) net capital outflow is positive (indicating an inflow of capital) , so foreign assets bought by Americans are greater than American assets bought by foreigners.
B) net capital outflow is positive (indicating an inflow of capital) , so American assets bought by foreigners are greater than foreign assets bought by Americans.
C) net capital outflow is negative (indicating an outflow of capital) , so foreign assets bought by Americans are greater than American assets bought by foreigners.
D) net capital outflow is negative (indicating an outflow of capital) , so American assets bought by foreigners are greater than foreign assets bought by Americans.